LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7159 NOTE PREPARED: Mar 27, 2025
BILL NUMBER: HB 1214 BILL AMENDED: Mar 20, 2025
SUBJECT: Worker's Compensation.
FIRST AUTHOR: Rep. Lehman BILL STATUS: As Passed Senate
FIRST SPONSOR: Sen. Zay
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: The bill provides that, after June 30, 2025, a party may not prohibit an employer
from bidding on a contract solely on the basis of the employer's experience rating.
Effective Date: July 1, 2025.
Explanation of State Expenditures: All Agencies as Employers/Contractees: The bill prevents a party (after
June 30, 2025) from prohibiting an employer from bidding on a contract solely on the basis of the
employer’s experience rating for workers’ compensation, but it does not prevent parties awarding contracts
from considering the employer’s experience rating. This may impact future contract costs and negotiations.
The experience rating has historically been a factor considered in the safety evaluation of a construction
operation or contractor. This could increase the potential number of contract bids, yet the impact on costs
is indeterminate at this time.
Explanation of State Revenues:
Explanation of Local Expenditures: All Units as Employers/Contractees: The bill prevents a party (after
June 30, 2025) from prohibiting an employer from bidding on a contract solely on the basis of the
employer’s experience rating for workers’ compensation and could impact contract costs and negotiations.
Explanation of Local Revenues:
State Agencies Affected: All.
Local Agencies Affected: All.
Information Sources:
HB 1214 1 Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1214 2